Brownie's Marine Group Inc (BWMG)

[dickmilde]

The 8K dated 9-12 disclosed that the company sold stock to an accredited investor for $205,000.

The 8K dated 10-12 disclosed a lease obligation, a change in their accountant and also a stock sale in a private placement for $66,793

Neither of the 8Ks are good news because BWMG is selling stock to raise money for working capital. Or to say it a different way... They still are not cash flow positive enough to be able to cover operating expenses.

Look at any 10K and you will see that BWMG has been selling stock to raise money to operate the business since the beginning of time. Thats why there are over 410 million shares outstanding.

The next 10Q might have some clues about the current sales rate and perhaps something about new products. I don't feel very optimistic regarding new products because that would likely have already been disclosed. The gross sales level, gross margin and operating expenses should give us an idea of the current direction of the business.

BWMG will need to sell more stuff with a gross margin so that there is enough to cover "working capital" requirements. This higher sales level can only come from selling more of the current product lines or adding new offerings. They have been doing a good job re new products so I'm hopeful that the trend continues.